JBBJ provides subcontracted construction services across the UK. Our CIS payment model ensures all subcontractors are compliantly paid under the rules and regulations of HMRC, in conjunction with the CIS scheme. Our process removes the legislative burden and risks arising from engaging directly with self-employed subcontractors, ensuring they are engaged correctly with the relevant CIS payments being made to HMRC.
What is The Construction Industry Scheme (CIS)?
The Construction Industry Scheme (CIS) is a tax regime that HMRC set up to cater for self-employment in the construction industry. Tax is deducted at either a higher (30%), net (20%) or gross level depending on the status of the subcontractor’s UTR number.
CIS tax deduction rates are as follows:
- ‘Net’ deduction (20%) – a flat rate of 20% is the standard deduction for subcontractors who have registered their UTR number under the CIS
- Higher deduction payment (30%) – Deductions at the higher rate of 30% may be taken if the UTR number you’ve provided to the contractor is either incorrect or has not been registered. If you are having problems with your UTR number being verified by contractors, you should contact the CIS office for assistance.
- Gross payment (0%) – If you have been granted gross payment status by HMRC there will be no deductions made on your payment. As is compulsory with self-employment, a self-assessment tax return is then completed at year-end, at which point your tax and national insurance bill for the year is calculated. Any CIS deductions suffered will be offset against your final tax bill.
When completing your tax return, you will be able to offset any expenses incurred throughout the year against your income for tax purposes. Any overpaid tax will be reimbursed to you by HMRC.
HMRC state that the scheme covers all construction work carried out in the UK. If you are a contractor that engages subcontractors to undertake the following roles, then CIS applies to your business:
Site Preparation · Alterations · Dismantling · Construction · Repairs · Decorating · Demolition
HMRC state that the scheme covers all construction work carried out in the UK. If you are a contractor that engages subcontractors to undertake the following roles, then CIS applies to your business:
JBBJ engages many subcontractors and provides construction services to organisations throughout the UK, with compliance and customer service at the heart of what we do. By using JBBJ for your construction project, you won’t need to engage subcontractors directly; we will complete the project and engage such subcontractors as necessary.
As you wholly outsource the project to us and we are engaging the subcontractors, you don’t need to worry about HMRC employment status challenges or employment tribunal claims. Plus, you will only need to make one payment to us, greatly reducing your admin burden.
Our experienced team guide contractors through their options in an honest and transparent manner, helping them to understand how we can meet their contracting needs.
If you are a contractor looking for CIS payroll for your subcontractor services, then visit our CIS Payroll page.
JBBJ specialise in the processing of payments to subcontractors working within the construction industry, on behalf of a Contractor. The benefits of this service include:
- Assurance that all compliance measures are taken, and subcontractors are genuinely self-employed
- Comprehensive insurance cover for the subcontractors
- Reduced time and costs spent on internal administration
- Confidence that subcontractors are paid correctly and on time
- Ability to supply the best tradesmen
- Flexibility of workforce
- UK based call centre
- SMS payment alerts for subcontractors
- Dedicated Account Manager
- Competitive industry rates
The transfer over from our previous payroll company to yourself has been seamless, not a single issue, the team at JBBJ has been a godsend, they have been so helpful and made the whole transfer completely stress free.
JBBJ offer an extremely professional and efficient service, always available to provide any information or deal with any queries competently and promptly.
I will be happy to tell anyone who is looking for a payroll provider to contact JBBJ, as you have been nothing but 100% professional and a real genuine pleasure to work with.